NovaGold 1Q15 Earnings Call Notes

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$157 m in cash, expect to have $120 m at year end

“Turning to our cash flow on Slide 8, our total cash and term deposits decreased by $8.3 million as planned and similar to the prior year quarter. We ended the quarter with cash and term deposits totaling $157 million.

We expect to spend $45 million for the full year including the repayment of the remaining $15.8 million of convertible notes on May 1. We should end the year with approximately $120 million in cash and term deposits.”

39m ounces of gold at Dolin

“Our flagship Donlin Gold as shown on Slide 9 continues to retain all its important fundamentally positive attributes. With 39 million ounces of gold in resources at an average grade of 2.2 grams is one of the largest and highest grade undeveloped gold deposits in the world.’

Exploration upside

” Tremendous exploration upside exists at Donlin with multiple targets and areas that have not yet been fully explored.”

Unexpiring warrant

“One of the qualities most sought out by our investors is Donlin Gold excellent leverage as shown on Slide 13. They look at NovaGold, enhance Donlin Gold as an un-expiring warrant on an ounce of gold.”

In the US

“In addition to quantity and quality, Donlin Gold’s in the United States is a great location to be in. When we meet with investors and talk about the project, we say that the U.S. had a defined and rigorous permitting process. It’s a place where rural law is not a novelty. Once you get trick, you get to keep the fruits of your labor.

As shown on Slide 14, jurisdiction is an important issue in the resources sector. One of the key questions that investors will be asking in mining companies is where in the world are your assets located? You wouldn’t take your family there on vacation? Why would you want to invest there?

In recent months, we’ve seen coups, kidnappings, instability and changing geopolitics. The emerging markets are slowly deteriorating and have altered how investors look at opportunities. Investing in these regions carries risks well beyond what you find in North America.’

Permitting process in US is rightly rigorous

“The permitting process in the United States is rigorous and rightly so. It is the very reasonable price we pay for having security of tenure in one of the world’s safest jurisdictions. As mangers of a rich piece of real estate with a massive mineral endowment, we’re advocates for the government agencies for our counterparts in this process.”